CLICO Holdings Barbados Ltd (CHBL) is under receivership with immediate effect.
This news has come from Deloitte Consulting Ltd, the Judicial Manager of CLICO International Life Insurance Ltd. (CIL).
“The Judicial Manager’s decision is in keeping with the basis of its appointment to act in the interest of policyholders. By placing CHBL under receivership, the Judicial Manager’s intent is to preserve the assets of CHBL and maximize the recovery value on behalf of policyholders,” noted the release.
In its Interim Report filed on May 27, 2011 the Judicial Manager identified that CIL reported assets of $802m of which $370m were amounts due from related companies and of which $319, were due from CHBL. It stated that the realization of the CHBL debt is crucial to any plan for the effective restructuring of the entity.
The release noted that the final restructuring plan as set out by the Judicial Manager in its Report of 14 June, 2013 estimates that the total assets of CIL as of 31 December, 2012 amounted to $448m at fair market value of which $173m represents assets due from related companies.
“The said final restructuring plan is predicated upon the inclusion of assets of CHBL in a new company. As such, the JM must be in a position to transfer the realisable value of CHBL’s indebtedness to the benefit of CIL in order for the final restructuring plan to succeed,” stated the Judicial Manager. (PR)
